Advert income up for Fb & Twitter, Amazon consumers’ regret: Monday’s every day temporary
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Good morning marketers, what does Twitter have to do to be liked?
Sure, people are on Facebook all the time and for a lot of good reasons. But Facebook continues to thrive, and while facing user privacy challenges against Apple, it has easily shaken off criticism, regulatory abuse, and advertising boycotts.
However, Twitter always seems to give the impression that it is continuing. Yes, ad revenue is rising, but there’s no reason to believe they’ll ever take off like a rocket, partly because user growth has nearly plateaued in recent years. Yes, it grows a little every quarter, but it feels like around 300 million active users per month is the audience that it will have indefinitely. And investors seem to share that view.
Twitter is part of most marketing strategies, but it feels like it’s not the critical part. How much would brands miss it?
Editor in Chief
Facebook sales nearly doubled: Twitter hit its target, but the stock fell
In the earnings reports for the first quarter last week, Facebook nearly doubled its revenue year-on-year. Twitter’s revenue rose 28% but missed its monthly user forecast and issued a second-quarter revenue forecast that fell short of market expectations. Twitter shares fell after the earnings were posted, closing 17% on Friday.
The rise in Facebook was largely due to an increase in ad prices. This emerges from the CFO’s comment on the earnings report: “We’re excited about the strength of our ad revenue growth in Q1 2021, driven by a 30% year-over-year increase in the average price per ad and an increase in the number of delivered advertisements by 12%. “
Why we care. That was a feel-good report for Facebook, but until we know what impact Apple’s App Tracking Transparency initiative will have on inventory value, it’s difficult to extrapolate much from these first quarter results.
Twitter continues to be a very well-known social media channel and the increase in advertising revenue is to be welcomed, but it still seems to be making its way as a company. Maybe it’s looking for its Instagram (Vine wasn’t).
Read more here
Credit card ads were age-based and violated Facebook’s anti-discrimination policy
According to a new report from The Markup, financial product companies have been able to exclude users under certain age groups from their target audience. “The markup found examples of four different companies targeting financial services ads to restricted age groups. This practice violates Facebook’s anti-discrimination guidelines and in some cases may violate federal or state civil rights laws,” write Corin Faife and Alfred Ng.
With the Zero credit card from Aspiration, users under the age of 25 could be excluded. Another service called Hometap, which offers cash in exchange for home shares, has been able to ban Facebook users under the age of 35 from their campaigns. It’s not obvious how the ads got around anti-discrimination filters Facebook put in place.
This is not the first time an ad product has allowed discrimination to slide through the cracks. In February, employers, landlords, and loan providers could prevent their Google ads from showing “unrecognized gender”, potentially creating potential discrimination against non-binary people.
Why we care. Targeting is key to making sure your advertising reaches the right audience. However, it is also imperative that your advertising does not illegally exclude any group. Most advertising tools have logs to prevent this from happening. However, advertisers in industries like finance, housing, and employment need to be extra careful and give each targeting a second look before starting.
Can Amazon’s influence on buyers be broken?
40% of US shoppers want to cut their purchases on Amazon, and 30% feel guilty after buying on Amazon. These results come from a survey of over 2,000 US consumers conducted by Advanis for Sitecore. Almost half of the respondents fell into the 18 to 24 age group.
Age is relevant here because the younger the respondent is, the more likely they are to feel guilty. Baby boomers did well with the online shopping giant. Of course, guilty conscience can have many reasons, from buying or spending too much to disapproval of Amazon’s treatment of the workforce and hostility towards unions.
The survey isn’t clear about the causes, but a lot could be read about the reasons people considered quitting Amazon. Poor quality purchases and a lack of choice (21% each) were reported much more often than trying to give other online retailers a chance (12%).
Why we care. The bottom line is experience. Gen Z feels most guilty about using Amazon, and over 40% of Gen Z would happily switch if other online retailers offered a comparable experience, including discounts and incentives. Young consumers give competitors on Amazon a clear roadmap to win their business.
quote of the Day
“The current situation in India broke my heart. I am grateful that the US government is mobilizing to help. Microsoft will continue to use its voice, resources, and technology to support relief efforts and assist in the purchase of critical oxygen concentration devices. “Satya Nadella, CEO of Microsoft
About the author
Kim Davis is the editorial director of MarTech Today. Kim was born in London but has been a New Yorker for over two decades and started studying enterprise software a decade ago. His experience includes enterprise SaaS, data-driven city planning for digital displays, and applications of SaaS, digital technology and data in marketing. He first wrote about marketing technology as the editor of Haymarkets The Hub, a specialty marketing tech website that later became a channel for the established direct marketing brand DMN. Kim joined DMN in 2016 as Senior Editor and became Executive Editor, then Editor-in-Chief, a position he held until January 2020. Prior to technology journalism, Kim was the associate editor of a hyperlocal news item for the New York Times website, The Local: East Village, and previously worked as an academic publication editor and music journalist. He has written hundreds of New York restaurant reviews for a personal blog and has been an occasional guest on Eater.